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How do you negotiate down a dealer s price

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dan sommerfeld
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Posts: 1
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2003-11-25          69593

Hello,

I am in the process of looking for a Kubota B7800 with loader, MMM, and front snow-blower. I have many quotes and my local dealer is the highest by $1500. I would like to beat the lowest price by at least another $800, but I am unfamiliar with the profit margins they set on these tractors and their willingness to negotiate. My best price so far is $20,650 and I would like to get it under $20,000.

I was wondering what experiences you've had with making a deal? How much you can expect a dealer to drop? With cars I wouldn't be asking due to the immense resources online, but I have no idea as to the invoice on a tractor and equipment. Is there a way to find out?

Have you had any interesting things thrown in? (ie. Shop Manuals, service, touch-up paint)

I am curious as to your experiences!

Thanks,

Dan Sommerfeld




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Murf
Join Date: Dec 1999
Posts: 7249 Toronto Area, Ontario, Canada
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2003-11-25          69597

I recently did a pretty good job of beating up a dealer on price, mind you I bought 21 machines for cash....LOL.

Seriously, find the dealer with the best reputation for service, then sit down with him and your quotes. Tell him what machine you want and ask him what he can do for you.

One important point to bear in mind, the dealer you are going to beat up on price today may be the same dealer who you're going to ask to be kind to you on warranty and or service issues tomorrow. What you give today you might get back tomorrow.

Best of luck. ....

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Art White
Join Date: Jan 2000
Posts: 6898 Waterville New York
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2003-11-25          69601

Dan, it looks like you have a free snowblower out of it and that is a pretty good deal. The other novelities you made mention of are all good bargining chips. ....

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2shoes
Join Date: Jul 2003
Posts: 3 North Liberty IN
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2003-11-25          69615

I too am trying to understand what a fair price is for ANY brand of tractor. My 2 closest dealers are of no help in selecting a tractor or talking to. So I have turned to the internet. Today I came finally came across a dealer who was not afraid to post prices. Go to www.deenimplement.com Their November specials for a B7800HSD R4 tires / front loader w/bucket / bush hog 5' / 5ft box blade is $15,990. I think? there is an advantage for buying out of state (no sales tax). I would no normally consider this, but my dealer has done nothing for me on repeated visits. Good luck ....

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Art White
Join Date: Jan 2000
Posts: 6898 Waterville New York
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2003-11-25          69633

2shoes, that is a good price from Deen. I don't know about your other dealers but that is a good price. See what they are offering on after sale benifits. ....

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kubotaguy
Join Date: Nov 2003
Posts: 360 Shepherdstown, WV
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2003-11-26          69666

I just bought a B-7800 with R-4 FEL, 60" MMM, 5 ft. Befco box blade, Rear tire chains (every 2 links cross links) for $17,650. I got a quote for a rear snow blower of $2,100. My dealer is very helpful but didn't provide any extra perks as part of the deal, but they are awesome when it comes to answering questions and providing suggestions. They are interested in helping me as opposed to how much they can sell me. That meant a lot. ....

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Gro_Kiwi
Join Date: Sep 2003
Posts: 12 Clivis, CA
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2003-12-05          70315

I have talked to a lot of dealers in my research. Many of the internet dealers had much better prices than my local dealers, but then after considering the cost of shipping the unit, the local dealers were in the ballpark.

If you are able to drive and tow back, you can get some great internet deals unless like me, the tow would be 1800 to 2200 miles. I have done a lot of towing of farm implements over the years, and it is no where close to as easy to tow as a travel or horse trailer. 1800 miles is a very long tow just to save a few $$.

I decided to go with and order my B2410 from the local dealer. I asked and got a commitment from them to pick up and deliver back the tractor or any of my implements free of charge for any service work needed for as long as I own the tractor. I figured that working with the local dealer would be more cost efficient in the long run.

Then at the last minute, they asked if I wanted a B2710 for the same price I ordered the B2410. This was just being in the right place at the right time. They are putting the R-1 tires right now on my new B2710.

....

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TomG
Join Date: Feb 2002
Posts: 5406 Upper Ottawa Valley
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2003-12-05          70335

Good local dealer support to me is worth a bunch and I'd never diminish support by negotiating it away. As far as I know there's surprisingly little room for dealers to negotiate new prices and some manufacturers have restrictive policies in what dealers can do. The idea of these policies is to preserve local dealerships by controlling the practices of dealers who want to style themselves as large volume discounters. I think that's good for me because I want to see my dealers stay in business more than I want a low initial sale price. The sale only happens once but support and the value it provides goes on for decades,

As I understand, to successfully negotiate you have to have your own bottom line, and you can't let the other party know what that is. Gem dealers and poker players sometimes wear dark glasses so the other party can't see their eyes dilate if their bottom line deal is offered. You also have to have alternatives. You can't negotiate very well with the only game in town if the only other alternative is doing without. It's good to have a price on another tractor that you know you'll go for. A deal makers is good at reading people and if you have no bottom line or no alternatives the dealer maker will know it and any negotiating is just public relations feel good stuff. ....

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Chief
Join Date: Jul 2003
Posts: 4297 Southwest MiddleTennessee
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2003-12-05          70339

Tom makes some good points about the poker dealers and dark glasses but nothing will soften up the salesmanager like having some naked pictures of his wife. ;-) Or pictures of him with his mistress. ;-) Couldn't resist the opportunity for some tractor sales humor! ....

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AC5ZO
Join Date: Jul 2003
Posts: 928 Rio Rancho, NM 87144
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2003-12-05          70344

Dan, I think it all comes down to talking this out with your local dealer. You have his price and the prices off of the Internet. The local dealer probably cannot help with the sales tax issue, but some states are more aggressively going after "use" tax for out of state purchases. This is the same as sales tax and the states are trying to make criminals out of those that avoid it by buying across state lines. Since tractors are not titled in most states, the go'ment doesn't have a good way of tracking out of state sales, but if you were to ask them, they would most likely tell you that you owe the tax. (Dennis Kozlowski is going to jail in part because of his avoidance of NY sales tax on purchased artwork.)

There are hidden costs with either transaction. I don't know your local dealer, but you should read some of the threads about people trying to get service after getting a "good price" out of town or buying a gray market tractor for that matter. A dealer may help you out or give advice if they sold the tractor, but they have "no obligation" to you if you buy your tractor somewhere else to save a few bucks. The price that you save may very well start to erode when you buy an implement or NEED service. Imagine that you are a plumber and a homeowner goes to Home Depot and buys pipe and fittings and then asks you to tell him how to do the job so that he doesn't have to pay your bill.

There are lots of soft issues that you can negotiate like transportation of the tractor to the dealership for service if you buy it from them. Be sure and get the free hat!;-) Seriously, tell the dealer what you have to consider, and work with him to develop a relationship because you are probably going to have your tractor for a long time. As Chief said, though, it doesn't hurt to have pictures either. ;-) In the final analysis, you and the dealer have to reach a deal that you can both live with. ....

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kubotaguy
Join Date: Nov 2003
Posts: 360 Shepherdstown, WV
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2003-12-05          70370

If you want to check the integrity of a dealer, have a female friend go in and get a price and if it is close to what he quoted you then they aren't trying to screw anyone. I did this with my wife when I was looking for my tractor and the sales guy's quotes were very close. Once you see all those nice shiny orange machines, it's tough to walk away!!!

Good luck ....

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Chief
Join Date: Jul 2003
Posts: 4297 Southwest MiddleTennessee
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2003-12-05          70376

Its not so bad as you think if you go look at the nice shiney greem machines. ;-) ....

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Chief
Join Date: Jul 2003
Posts: 4297 Southwest MiddleTennessee
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2003-12-05          70377

Then again you could try sending the wife in dressing in spike heels, short skirt, and something low cut and see what kind of deal the salesman offers. ;-) Has a tendency to cause GREAT competition for the new customer amongst the salesmen. ....

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itsgottobegreen
Join Date: Oct 2003
Posts: 329 Mt. Airy, MD
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2003-12-20          71757

I always deal with backyardpower.com or gladhill JD which are my local dealers. Every time i go into by something. I just add to my equipment credit. Backyardpower gives better prices to commerical guys like me who have bought a lot of parts and equipment. I bought my B7500 used, but it came from backyardpower when it was oringally bought, so i still get parts at a discount for it. I also talked kevin (owner) into selling the wright stander and sentar mowers. He now can't keep them instock. So that also helps me. I always make a note to the sales person about all the equipment i bought from them. Hey if its $15 off a hedge trimmer or $1500 of a tractor. I gone in and bought stuff for friends at my discount and get the credit. ....

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Wallace
Join Date: Dec 2005
Posts: 33 Northeast Pa.
TractorPoint Premium Member -- 5 Tractors = Very Frequent Poster

2003-12-20          71762

Yes we have some room to work on our prices but when you do try to compair prices between brands make sure you are compairing apples to apples. As a dealer working to sell you brand against brand we hate to beat up our own, but we will beat down the outher guys. ....

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wallac
Join Date: Dec 2003
Posts: 70 Pennsylvannia
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2003-12-20          71765

Anyone want to buy a new KIOTI 4Wheel drive LK3054 with a loader? ....

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